A purchase APR is the interest rate the credit card company will charge on the purchases when you carry a balance on your card. Normally credit cards have different APRs, and a card may have several attached to it, including the purchase APR.
Applying purchase APR
Usually, there are different rates for purchases and cash advances, and the credit card APR can change with a notice of 45 days. When you pay your balance in full before the end of the month, that is the billing cycle and the day the payment is due. A single account can have different APRs, and the purchase APR is for things bought only or physical locations. For instance, when you make purchases at an online store or gas station, the purchase APR will be attached to the amount that you do not pay in full when the payment date is due.
Sometimes there is an introductory purchase APR, which offers consumers a way of paying for new purchases at lower interest rates. This is a promotional APR, and once the promotion is over, the regular purchase APR will kick in, which is usually a higher rate you pay on purchases.
Getting good regular purchase APR
When your credit rating is better, you are likely to get a good and lower purchase APR. Different issuers attach APRs to credit cards depending on the creditworthiness of the applicant. To boost your credit score, always keep your revolving debt low and send payments on time.
Using different credit products for a long period will help in enhancing your credit score. You can use different credit products like loans and cards over the years. Most importantly, don’t apply for many credit products within a short period.
Keeping regular purchase APR low
If your introductory APR is changing to regular purchase APR, you can ask your issuer to reduce APR. Also, ensure you pay your balances on time to avoid APR’s rate going high with penalty APR. If there are problems, you should alert your issuer.